Aberdeen Harbor to Expand, Create 7,000 Additional Jobs
Aberdeen Harbor will expand its facilities into Nigg Bay, to the south of the existing harbor, creating 7,000 additional jobs in the process.
Commencement of the $433 million (GBP 350 million) project, which was recently granted planning consent in the form of Marine Licenses and a Harbour Revision Order by the Scottish Government, was recently sanctioned by the board of Aberdeen Harbor.
The new facilities will include 4,593 feet of new quay, with a water depth of up to 34 feet. An independent study, commissioned by Scottish Enterprise, estimates that the development will generate an additional $1.2 billion (GBP 1 billion) per annum to the economy by 2035, and will create an additional 7,000 jobs. The development is scheduled to be completed by 2020.
Funding arrangements for the project incorporated commercial borrowing from the European Investment Bank, and funding from the Aberdeen City & Region Deal. In January it was announced that up to $358 million would be pumped into Scotland’s economy, as part of a new deal that was designed to support the country’s oil and gas sector.
The funding was earmarked for a new energy innovation centre, an expansion of Aberdeen harbor to enable the city to compete for decommissioning work and measures to support the industry to exploit remaining North Sea reserves.
“We are delighted that, after six years of detailed planning and extensive consultation with our many stakeholders and the regulatory authorities, we are now in a position to approve commencement of construction”, Colin Parker, chief executive of Aberdeen Harbor Board, said in a statement sent to Rigzone.
“The expansion will afford existing customers the opportunity to diversify and expand their interests, whilst attracting new customers and markets to the port, including up-scaled decommissioning activity,” he added.
Scotland’s Minister for Transport and the Islands, Humza Yousaf, also praised the latest development in Aberdeen Harbor’s expansion process.
“This is excellent news for Aberdeen and the Scottish maritime industry, as the signing of the construction contract means this nationally significant project can now get underway in earnest,” Yousaf said.
“The significant investment will bring jobs and business to Aberdeen, supporting the local and national economy. The historic harbour will be transformed to accommodate larger vessels, opening up potential new revenue streams and offering customers world-class marine support facilities,” Yousaf added.
Jonathan Taylor, vice president of the European Investment Bank, outlined the importance of investment at European ports.
“Continued investment at Europe’s leading ports is essential to improve infrastructure and to cater for ever-changing shipping needs. The European Investment Bank is pleased to support the transformational Nigg Bay development that will significantly increase quayside space, allow deep-water access for larger vessels and ensure Aberdeen’s continued strong contribution to the Scottish economy,” Taylor said.
Aberdeen Harbor is the center of activity for the energy industry’s marine operations in North-west Europe, the Aberdeen Harbor Board stated. Activity at the port currently generates over $1.5 billion to the region’s economy each year and helps sustain around 12,000 full-time jobs.
In May this year the Scottish National Party won the Scottish general election after pledging to support the oil and gas industry, becoming the first party to win a third consecutive term in office.
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